Anhui Ankai Automobile Co.Ltd(000868)
Self evaluation report on internal control in 2021
Anhui Ankai Automobile Co.Ltd(000868) all shareholders:
In accordance with the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control regulatory requirements (hereinafter referred to as the enterprise internal control normative system), combined with Anhui Ankai Automobile Co.Ltd(000868) (hereinafter referred to as the “company”) internal control system and evaluation methods, on the basis of daily and special supervision of internal control, We evaluated the effectiveness of the company’s internal control on December 31, 2021 (the benchmark date of the internal control evaluation report).
1、 Important statement
It is the responsibility of the board of directors of the company to establish, improve and effectively implement internal control, evaluate its effectiveness and truthfully disclose the internal control evaluation report in accordance with the provisions of the enterprise’s internal control standard system. The board of supervisors shall supervise the establishment and implementation of internal control by the board of directors. The management is responsible for organizing and leading the daily operation of the enterprise’s internal control. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this report, and bear individual and joint legal liabilities for the authenticity, accuracy and completeness of the contents of the report.
The objective of the company’s internal control is to reasonably ensure the legal compliance of operation and management, asset safety, authenticity and integrity of financial reports and relevant information, improve operation efficiency and effect, and promote the realization of development strategy. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the realization of the above objectives. In addition, as changes in circumstances may lead to inappropriate internal control or reduced compliance with control policies and procedures, there is a certain risk to speculate the effectiveness of internal control in the future according to the internal control evaluation results.
2、 Internal control evaluation conclusion
According to the identification of major defects in the company’s internal control over financial reporting, there are no major defects in the internal control over financial reporting on the benchmark date of the internal control evaluation report. The board of Directors believes that the company has maintained effective internal control over financial reporting in all major aspects in accordance with the requirements of the enterprise’s internal control standard system and relevant regulations. According to the identification of major defects in the company’s internal control over non-financial reports, the company found no major defects in the company’s internal control over non-financial reports on the benchmark date of the internal control evaluation report.
There are no factors affecting the evaluation conclusion of the effectiveness of internal control from the base date of the internal control evaluation report to the date of issuance of the internal control evaluation report.
3、 Internal control evaluation
(I) evaluation scope of internal control
According to the basic norms of internal control of enterprises, the guidelines on internal control of listed companies of Shenzhen Stock Exchange and the internal control system of the enterprise, the company determines the specific contents of internal control evaluation around the internal environment, risk assessment, control activities, information and communication, internal supervision and other elements. The units included in the evaluation scope of this year include the headquarters of the company and its subsidiary Anhui Ankai JINDA Machinery Manufacturing Co., Ltd Anhui Jianghuai Bus Co., Ltd., Anhui Kaiya Auto Parts Co., Ltd. and Anhui Ankai Automobile Technical Service Co., Ltd. the total assets of the unit included in the evaluation scope account for 100% of the total assets in the company’s consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue in the company’s consolidated financial statements. The main businesses and matters included in the evaluation scope include: organizational structure, development strategy, human resources, corporate culture, fund management, procurement business, asset management, sales business, research and development, financial reporting, comprehensive budget, contract management, information system and internal information transmission, special risk control, etc.
The above units, businesses and matters included in the evaluation scope and high-risk areas cover the main aspects of the company’s operation and management, and there are no major omissions.
（2） Basis of internal control evaluation and identification standard of internal control defects
The company carries out internal control evaluation according to the enterprise internal control standard system and organization. The board of directors of the company studied and determined the specific identification standards of internal control defects applicable to the company according to the identification requirements of major defects, important defects and general defects of the enterprise internal control standard system, combined with the company’s scale, industry characteristics, risk preference, risk tolerance and other factors, and kept consistent with the previous years. The identification standards of internal control defects determined by the company are as follows:
1. Identification criteria for defects in internal control over financial reporting
(1) The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Major defects: fraud of directors, supervisors and senior managers of the company; The combination of one or more control defects may cause the enterprise to seriously deviate from the control objectives.
Significant deficiencies: failure to select and apply accounting policies in accordance with GAAP; There are one or more defects in the control of the financial reporting process at the end of the period, and it can not reasonably ensure that the prepared financial statements achieve the goal of authenticity and accuracy.
General defects refer to other control defects other than the above major defects and important defects.
(2) The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Major defect: the overall impact level of the defect reaches more than 1% of the net assets.
Important defect: the overall impact level of this defect reaches 0.5% – 1% of net assets.
General defect: the overall impact level of the defect reaches 0.1% – 0.5% of the net assets.
2. Identification standard of internal control defects in non-financial reporting
(1) The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Major defects: violation of national laws and regulations or normative documents, unscientific major decision-making procedures, lack of institutional control or systematic failure of important businesses, serious loss of core management personnel, results of internal control evaluation, especially major or important defects that cannot be rectified, and other situations that have a significant impact on the company.
Other situations are identified as important defects or general defects according to the degree of influence.
(2) The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Major defect: the overall impact level of the defect reaches more than 1% of the net assets.
Important defect: the overall impact level of this defect reaches 0.5% – 1% of net assets.
General defect: the overall impact level of the defect reaches 0.1% – 0.5% of the net assets.
(III) identification and rectification of internal control defects
1. Identification and rectification of internal control defects in financial reporting
According to the above identification standards of internal control defects in financial reports, the company has no major defects in internal control over financial reports during the reporting period.
2. Identification and rectification of internal control defects in non-financial reports
According to the above identification standards of internal control defects in non-financial reports, no major defects in the company’s internal control over non-financial reports were found during the reporting period.
4、 Description of other major matters related to internal control
None.
Anhui Ankai Automobile Co.Ltd(000868) board of directors March 22, 2022
